Warren Buffett’s pension fund is about to start taking its next big bet.
Warren Buffett, the founder and chairman of Berkshire Hathaway, is one of the wealthiest Americans, with a fortune estimated at $60 billion.
The billionaire investor’s Berkshire Hathaways portfolio, which includes the company’s namesake company, owns roughly 1.3 million shares of its peers.
But Buffett’s own company, Berkshire Hathway Inc., has $8.4 billion in cash and marketable securities and has no holdings in pension funds, securities dealers or other assets, according to Bloomberg data.
Buffett has not commented publicly on the idea of buying out the Vanguard group, which owns about 70% of the pension funds he has a stake in.
The billionaire investor, who has not been publicly vocal on retirement or philanthropy in recent years, has said he plans to focus on his own businesses rather than fund retirement income.
The announcement came Thursday as Buffett was at a conference in Dallas and Berkshire Hathways CEO and president David Deitch said the firm’s assets are under pressure, especially as the economy weakens.
Buffett has a personal net worth of $62 billion and has $9.6 billion in assets, Deitch told the Dallas Business Journal.
The pension fund will be a big asset for Buffett.
He owns about $15.5 billion in Berkshire Hathaforts own assets, including his stake in Berkshire’s most successful stock, S&P 500 index funds, according for Berkshire Hathabys annual reports filed in 2017.
He has also made a habit of buying more stocks than others and his own holdings in other firms have been on the decline.
In 2019, he sold his stake to a private equity group and has since made a push to diversify.
He said he was leaning toward investing in Vanguard’s pension funds as they have the most stable funds under management.
He noted that Vanguard has been able to make investments that the fund has made over the years, including the $4 billion buyout of American International Group in 2016.
Buffalo and Vanguard’s combined portfolio has $10.3 billion in total assets, about 6% of Warren Buffetts total net worth.
The funds are worth $8,856 million.
The Vanguard group holds $11.7 billion in the stock market.